‘Sure Things’ Check-In

At the start of 2017, I compiled a list of predictions that gurus had made for the upcoming year, along with some items that I hear frequently from investors, for a sort of consensus on the year’s “sure things.” I’ve kept track of these sure things with a review at the end of each quarter.

With the turn of the calendar, our third quarter review of 2017’s list is due. As is my practice, I’ll give a score of +1 for a forecast that came true, a score of -1 for one that was wrong, and a 0 for one that was basically a tie.

Bonds & Stimulus

Our first sure thing was that the Federal Reserve would continue to raise interest rates in 2017, leading many to > SEE MORE

Choosing a Trusted Advisor

 

The following are 10 principles we embrace to help us serve as a trusted advisor.

Act in the best interest of the client

We provide advice and recommendations that are in the client’s best interest. Period. Not because we are legally obligated to (although we are). Not because it works well as a business model (it does). Simply because it is right. Our other goals follow the path of this guiding principle.

Pursuant to the Investment Advisers Act of 1940, we follow a fiduciary duty standard of care. This is often referred to as the highest legal duty of care for a client’s welfare, and it’s one we gladly accept — in contrast to the less-­stringent suitability ­standard.

Deliver attentive, individualized service > SEE MORE

Tom Geoghegan

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Tom Geoghegan

Founder and Private Wealth Advisor
Beacon Hill Private Wealth

Discipline Is Critical to Successful Investing

 

Having a well-thought-out investment plan is the necessary condition for successful investing. However, it’s not sufficient.

The sufficient condition is having the discipline to stay the course during the virtually inevitable periods when a strategy underperforms. That, of course, is why Warren Buffett once advised investors that “the most important quality for an investor is temperament, not intellect.”

Unfortunately, it’s my experience that, when contemplating investment returns, the typical investor considers three years a long time, > SEE MORE

To Be a Retirement Savings Pro, Act as if ‘Someday’ Is Today

 

While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart to the local market to restock our dwindling supply of the necessary ingredients for piña coladas.

I was stopped in my tracks en route by a welcome sign announcing a new resident’s beachside home. It read: “Someday Came.”

The obvious implication is that these folks decided to act on their “Yeah, I’m gonna do that someday” daydreams.

But it raises many questions, right?

Who are these people? What’s their story, financial and otherwise? Did they hammer this sign into the sand after scrimping and saving, finally realizing their retirement dream > SEE MORE

What Your Financial Advisor Needs to Know About Your Brain

Behavioral economist Richard Thaler explains why financial professionals need to be familiar with psychology.

Daniel Kahneman and Amos Tversky legitimized behavioral economics—the study of how people really behave around money, as opposed to how economists say a rational person ought to behave.

Then Richard Thaler and Cass Sunstein applied the lessons of behavioral economics to everyday life with their book Nudge. The duo nudged so successfully that in recent years, their prescriptions have been put to work in corporate retirement plans—and even public policy—on a global scale.

When I spoke to Thaler to discuss his newest book, Misbehaving, a series of stories documenting the rise of > SEE MORE